Tigist Aschalew

Super market
Busines
s Plan

Owner :- Ms. Tigist Aschalew

Location
Municipality:- Nagele Borena
Kebele :- 01

November,2023

Table of Contents

I. Executive Summary.................................................................................................................................2

1. Industry Overview...................................................................................................................................3

2. Executive Summary.................................................................................................................................5

3. Our Products and Services.......................................................................................................................6

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4. Our Mission and Vision Statement..........................................................................................................6

5. Organization and Management Plan....................................................................................................6

6. SWOT Analysis.......................................................................................................................................8

7. MARKET ANALYSIS............................................................................................................................9

8. Our Target Market...................................................................................................................................9

9. SALES AND MARKETING STRATEGY...........................................................................................11

10. Sales Forecast......................................................................................................................................11

11.Marketing Strategy and Sales Strategy.................................................................................................12

12. Publicity and Advertising Strategy......................................................................................................13

13. Our Pricing Strategy............................................................................................................................14

14. Startup Expenditure (Budget)..............................................................................................................14

15.Projected Profit And Loss.....................................................................................................................16

I. Executive Summary

Key Information Highlights

Project Owner Ms.Tigist Aschalew

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 Project Title Supermarket

Project Area Negele Borena town, Kebele 01

Cost Of The Project (Loan Amoount) 2,500,000

1. Industry Overview
Supermarket and grocery stores account for the largest share of food store sales in the Ethiopia
next to traditional market.The food retail industry is a high-volume, low-margin business, with
cutthroat competition from all quarters. It includes grocery stores and supermarkets, as well as
convenience stores. The staples offered at these stores make the industry non-cyclical.

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In addition, grocery stores and supermarkets offer an alternative to restaurants during tough
economic times, as buying groceries for home cooking is one alternative. Buying prepared foods,
which are new higher-margin offerings at grocery stores, is an additional alternative to
restaurants.

However, offering new higher-margin items such as gourmet foods, prepared foods, and general
merchandise is making this industry more cyclical than in the past, creating pressures on revenue
during the recent economic downturn.

Small chains and independent grocers still dominate this industry, but national chains, such as ale
bejemela, are increasingly growing in dominance. Mass merchants, such as Qeens, are
competing with grocery stores at their “supercenters” by offering lower prices through lower cost
structures.The supermarket and grocery stores industry is indeed a very thriving industry in most
countries of the world.

Over and above, the supermarket and grocery store industry is a profitable industry and it is open
for any aspiring entrepreneur to come in and establish his or her business; you can chose to start
on a small scale in a street corner like the average mom and pop business or you can chose to
start on a large scale with chains of stores in key areas of cities.

2. Executive Summary
Tigist Aschalew Supermarket is a standard and licensed supermarket business that will be
located in between one of the largest residential estates and business district in East Borena zone
– Nagele Borena town.

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Tigist Aschalew Supermarket, Inc. will retail a wide range of durable goods and non-durable
goods at affordable prices from different brands and manufacturers both from Ethiopia and other
countries of the world.

We are aware that there are several small chains of supermarket / grocery store outlets all around
Nagele Borena, which is why we spent time and resources to conduct a thorough feasibility
studies and market survey so we can be well – prepared to offer much more than our competitors
will be offering. We will make available self – service options for our customers, and also
various payments of options.

Apart from retailing the goods and products of top brands in the manufacturing and food
industry, our customer care is second to none in the whole of Nagele Borena. We know that our
customers are the reason why we are in business which is why we will go the extra mile to get
them satisfied when they visit our grocery store and also to become our loyal customers and
ambassadors.

Tigist Aschalew Supermarket, Inc. will ensure that all our customers are given first class
treatment whenever they visit our grocery store.We will ensure that we get our customers
involved in the selection of brands that will be on our racks and also when making some business
decisions.

We are aware of the trend in the retail / supermarket and grocery store industry and we are not
only going to operate a system where our customers would have to come to our store to make
purchase or whatever they want but we will also operate an online store and our customers can
order goods cum groceries online and they will get it delivered to their houses or any location
they want us to deliver the goods to within Nagele Borena.

Tigist Aschalew Supermarket, Inc. is a family business that is owned by sister Tigist Aschalew
and her immediate family members. Ms Tigist Aschalew has educated upto grade 8 and had 12
years of experience in the trade industry,

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3. Our Products and Services
Tigist Aschalew Supermarket, plc is in the supermarket store industry and we will ensure we go
all the way to make available a wide range of goods and products from top manufacturing brands
in the Ethiopia and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at
affordable prices. Our product offerings are listed below;

 Fruit and vegetables

 Beauty products and jewelry
 Dairy products
 Beverages

4. Our Mission and Vision Statement

 Our vision is to become one of the leading brands in the supermarket and store industry
in Nagele Borena town and to open Branch of supermarket stores all across the city in
key areas.
 Our mission is to establish a supermarket business that will make available a wide range
of goods and products from top manufacturing / production brands at affordable prices to
the residence of Nagele Borena city.

5. Organization and Management Plan

Tigist Aschalew Supermarket, Inc. do not intend to start a supermarket business like the usual
mom and pop business around the street corner; our intention of starting a supermarket business
is to build a standard and one stop supermarket outlet in Nagele Borena.We will ensure that we
put the right structure in place that will support the kind of growth that we have in mind while
setting up the business.

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Job Roles and Responsibilities

Accountant / Cashier:

 He/she is responsible for managing the daily activities in the supermarket He/she control
goods distribution and supply inventory
 He / she is responsible for planning sales and monitoring inventory He / she is
responsible for the purchase of goods and products for the shop.
 Responsible for preparing financial reports, budgets, and financial statements for the
shop.
 He / she supervise the workforce in the supermarket sales floor.
 Provides owner with financial analyses, development budgets, and accounting reports;
analyzes financial feasibility for the most complex proposed projects; conducts market
research to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensuring compliance with taxation legislation
 Handles all financial transactions for the supermarket.
 Serves as internal auditor for the supermarket.

Cleaners:

 Responsible for cleaning the supermarket facility at all times

 Cleans both the interior and exterior of the supermarket facility
 Handle any other duty as assigned by the supermarket manager.

Monthly Annual salary

SN Position No
salary in Birr in Birr
1 Accountant 1 3,500.00 42,000.00

2 Cleaner 1 1,500.00 18,000.00

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 Total 2 5,000.00 60,000.00

6. SWOT Analysis
We are well informed that there are several supermarkets and grocery stores all around Nagele
Borena city and even in the same location where we intend opening our supermarket, which is
why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to
position our business to maximize our strength, leverage on the opportunities that will be
available to us, mitigate our risks and be welled equipped to confront our threats.

Tigist Aschalew Supermarket have conducted survey to help us conduct a thorough SWOT
analysis and to help us create a Business model that will help us achieve our business goals and
objectives. This is the summary of the SWOT analysis that was conducted for Tigist Aschalew
Supermarket.

 Strength:

Besides our competent team/ workforce, our location, the business model we will be operating
on (physical store), varieties of payment options, wide range of products and our excellent
customer service culture will definitely count as a strong strength for Tigist Aschalew
Supermarket.

 Weakness:

 Our weakness could be that Concept is not new and does not stimulate market growth

 Opportunities:

The fact that we shall operate our supermarket in between one of the biggest residential estates
and business districts in East Borena Zone – Nagele Borena town provides us with unlimited
opportunities to sell our goods to a large number of people.

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We have been able to conduct thorough feasibility studies and market survey and we know what
our potential clients will be looking for when they visit our supermarket; we are well positioned
to take on the opportunities that will come our way.

 Threat:

One of the major threats that we are likely going to face when we launch our supermarket
business is economic downturn. It is a fact that economic downturn affects purchasing / spending
power. Another threat that may likely confront us is the arrival of a new supermarket, grocery
store or retail outlet in same location where ours is located.

7. MARKET ANALYSIS
 Market Trends

It is a known fact that supermarket and grocery store business has been in existence for as long
as human started trading goods, but one thing is certain, the supermarket and grocery store
industry is still evolving. The introduction of technology and subsequently online grocery cum
retail store has indeed helped in reshaping the industry.

As a matter of fact, it is now a common trend for supermarkets and grocery outlets to leverage on
technology to effectively predict consumer demand patterns and to strategically position their
shop to meet their needs; in essence, the use of technology help retailers to maximize supply
chain efficiencies.

No doubt data collected from customers goes a long way to help supermarkets and grocery stores
serve them better. Another common trend in the supermarket and grocery store industry is the
pricing system.

Aside from having varieties of products in a store, one of the easiest ways for supermarket and
grocery stores to sell the goods on their racks as fast as they can and keep re – stocking is to
ensure that the prices of their goods are a bit lower than what is obtainable in elsewhere.

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8. Our Target Market
It will be safe to categorically state that the supermarket and grocery store industry has the
widest range of customers; everybody on planet earth has one or more things that they would
need in a supermarket or grocery store. It is difficult to find people around who don’t patronize
supermarket and grocery stores.

In view of that, we have positioned our supermarket store to service the residence of Nagele
Borena city where we intend opening our chains of supermarket stores.

We have conducted our market research and we have ideas of what our target market would be
expecting from us. We are in business to retail a wide range of goods and groceries to the
following groups of people;

 Households
 Business People
 Expectant Mothers
 Sports Men and Women
 Students
 Tourists

Our Competitive Advantage

Research and studies carried out in the supermarket and grocery store industry reveals that the
market has become much more intensely competitive over the last decade. As a matter of fact,
you have to be highly creative, customer centric and proactive if you must survive in this
industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with
other leading supermarkets and grocery stores in Nagele Borena.

Tigist Aschalew Supermarket. is launching a standard supermarket business that will indeed
become the preferred choice of residence of Nagele Borena town.

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We will ensure that we have a wide range of products from different manufacturers available in
our store at all times. It will be difficult for customers to visit our store and not find the product
that they are looking for.

One of our business goals is to make Tigist Aschalew Supermarket a one stop shop. Our
excellent customer service culture,various payment options and highly secured facility will serve
as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the
best within our category (startups supermarkets and grocery stores) in the industry meaning that
they will be more than willing to build the business with us and help deliver our set goals and
achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

 Sources of Income

Tigist Aschalew Supermarket, Inc. is in business to retail a wide range of goods to the residence
of Nagele Borena. We are in the supermarket and grocery industry to maximize profits and we
are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing of a wide range of durable goods and non –
durable goods at affordable prices. We will retail the following goods;

 Fruit and vegetables

 Beauty products
 Baby stuffs
 Dairy products
 Beverages
 Drugs and health products

10. Sales Forecast

If your store is well stocked and centrally positioned, you will always attract customers cum
sales and that will sure translate to increase in revenue generation for the business.

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We are well positioned to take on the available market in Nagele Borena and we are quite
optimistic that we will meet our set target of generating enough income / profits from the first six
month of operations and grow the business and our clientele base.

We have been able to critically examine the supermarket and grocery industry and we have
analyzed our chances in the industry and we have been able to come up with the following sales
forecast. The sales projections are based on information gathered on the field and some
assumptions that are peculiar to startups in Nagele Borena.

Below are the sales projections for Tigist Aschalew Supermarket,it is based on the location of
our business and other factors as it relates to supermarkets and grocery stores start – ups in the
East Borena Zone.

 First Fiscal Year-: 7,100,000.00

 Second Fiscal Year-: 7,810,000.00
 Third Fiscal Year-: 8,591,000.00

N.B: This projection is done based on what is obtainable in the industry and with the assumption
that there won’t be any major economic meltdown and there won’t be any major competitor
offering same products and customer care services as we do within same location. Please note
that the above projection might be lower and at the same time it might be higher.

11.Marketing Strategy and Sales Strategy

Prior to choosing a location for Tigist Aschalew Supermarket, we conduct a thorough market
survey and feasibility studies in order for us to be able to be able to penetrate the available
market and become the preferred choice for residence of Nagele Borena.

We have detailed information and data that we were able to utilize to structure our business to
attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the supermarket and grocery industry to help
us develop marketing strategies that will help us achieve our business goal of winning a larger
percentage of the available market in Nagele Borena town.

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In other to continue to be in business and grow, we must continue to sell the goods that are
available in our store which is why we will go all out to empower or sales and marketing team to
deliver. In summary, Tigist Aschalew Supermarket will adopt the following sales and marketing
approach to win customers over;

 Introduce our supermarket by sending introductory letters alongside our brochure to

organizations, households and key stake holders in the city.
 Ensure that we have a wide range of goods from different brand at all times.
 Make use of attractive hand bills to create awareness and also to give direction to our
supermarket store
 Position our signage / flexi banners at strategic places around the city.
 Position our greeters to welcome and direct potential customers
 Create a loyalty plan that will enable us reward our regular customers
 Engage on road shows within our neighborhood to create awareness for our bar
 Leverage on the internet to promote our business
 Engage direct marketing approach
 Encourage word of mouth marketing from loyal and satisfied clients

12. Publicity and Advertising Strategy

Irrespective of the fact that our supermarket store is well located, we will still go ahead to
intensify publicity for the business. We are going to explore all available means to promote our
supermarket store.

Tigist Aschalew Supermarket has a long term plan of opening chains of supermarket stores in
various key locations of the city.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers
over but to effectively communicate our brand. Here are the platforms we intend leveraging on to
promote and advertise Tigist Aschalew Supermarket.

 Place adverts on community based newspapers, radio stations and TV stations.

 Encourage the use of word of mouth publicity from our loyal customers

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  Leverage on the internet and social media platforms like; YouTube, Instagram,
Facebook ,Twitter, and other platforms to promote our business.
 Ensure that our we position our banners and billboards in strategic positions all around
city of Nagele Borena.
 Distribute our fliers and handbills in target areas in and around our neighborhood

13. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to supermarkets and grocery stores, it is
normal for consumers to go to places (retail outlets) where they can purchase goods at cheaper
price which is why big player in the supermarket and grocery industry will attract loads of
consumers.

We will ensure that the prices of all the products that are available in our supermarket store are
competitive with what is obtainable amongst supermarkets and grocery stores within our level.

Payment Options

The payment policy adopted by Tigist Aschalew Supermarket is all inclusive because we are
quite aware that different customers prefer different payment options as it suits them but at the
same time, we will ensure that we abide by the financial rules and regulation of the Ethiopian
government.

Here are the payment options that Tigist Aschalew Supermarket will make available to her
clients;

 Payment via bank transfer

 Payment with cash
 Payment via mobile money platform
 Payment via online bank transfer
 Payment via check

In view of the above, we have chosen banking platforms that will enable our client make
payment for goods purchased without any stress on their part. Our bank account numbers will be

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made available on our website and promotional materials to clients who may want to deposit
cash or make online transfer for goods purchased.

14. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to
undertake. If you intend to go big by renting a place, then you would need a good amount of
capital as you would need to ensure that your employees are well taken care of, and that your
facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and
aspirations for your business. The tools and equipment that will be used are nearly the same cost
everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a supermarket store business; it might differ in other
countries due to the value of their money. These are the key areas where we will spend our start
– up capital;

 The cost for Start-up inventory (stocking with a wide range of goods from different
suppliers) – 2,500,000

We would need an estimate of 2,500,000 to successfully set up our supermarket store in Nagele
Borena town.

Generating Funding / Startup Capital for Tigist Aschalew Supermarket

Tigist Aschalew Supermarket, Inc. is a private business that is solely owned and financed by
Tigist Aschalew and her family members. They do not intend to welcome any external business
partner which is why he has decided to restrict the sourcing of the start – up capital to 2 major
sources.

These are the areas we intend generating our start – up capital;

 Generate part of the start – up capital from personal savings

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  Apply for loan from my Bank

We have been able to generate and save about 140,000 (Personal savings) and we are at the
process to obtain a loan 2,500,000 from a bank.

15.Projected Profit And Loss

Table:- Profit and Loss
Year 1 Year 2 Year 3

Sales 7,100,000.00 7,810,000.00 8,591,000.00

Direct Cost of Sales 3,905,000.00 4,295,500.00 4,725,050.00

Other Costs of Sales (Cattle

feed)
102,000.0 117,300.0 134,895.0
Transportation 0 0 0

Total Cost of Sales 4,007,000.00 4,412,800.00 4,859,945.00

3,093,000.0 3,397,200.0 3,731,055.0

Gross Margin 0 0 0

Expenses
60,000.0 69,000.0
Salary and Wages 0 0
79,350.00

6,000.0 6,500.0
Marketing/Promotion 0 0
8,000.00

175,000.0 175,000.0 175,000.0

Depreciation 0 0 0
5,000.0 6,000.0
Utilities 0 0
7,000.00

140,693.5 140,693.5 140,693.5

Interest Expense 3 3 3

Total Operating Expenses 386,693.53 397,193.53 410,043.53

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 2,706,306.4 3,000,006.4 3,321,011.4
Profit Before Taxes 7 7 7
929,207.2 1,032,002.2 1,144,354.0
Taxes 6 6 1
Net Profit 1,777,099.21 1,968,004.21 2,176,657.46

Projected Cash Flow

Annex . cash flow

Project Life years

Description
1 2 3

INFLOW
3,093,000.0 3,397,200.0 3,731,055.0
Net sales revenue
0 0 0

TOTAL INFLOWS 3,093,000.00 3,397,200.00 3,731,055.00

OUTFLOWS

Operating cost 211,693.53 222,193.53 235,043.53

Income tax 990,457.26 1,093,252.26 1,205,604.01

TOTAL OUTFLOWS 1,202,150.79 1,315,445.79 1,440,647.54

NET CASH FLOW 1,890,849.21 2,081,754.21 2,290,407.46

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Projected Balance sheet

Balance Sheet
Initial balance Year 1 Year 2 Year 3
ASSETS
Current Assets:
Cash

Petty Cash 1,000.00 1,000.00 1,000.00 1,000.00

Accounts Receivables 2,500.00 3,000.00 3,000.00 3,000.00

Inventory 30,000.00 40,000.00 40,000.00 40,000.00

Employee Advances 100.00 - - -

Temporary Investments - - - -

Total Current Assets 33,600.00 44,000.00 44,000.00 44,000.00

Fixed Assets:

Land 300,000.00 300,000.00 300,000.00 300,000.00

Buildings 3,500,000.00 2,550,000.00 2,400,000.00 2,250,000.00

Furniture and Equipment 10,000.00 10,000.00 10,000.00 10,000.00

Less: Accumulated
Depreciation (350,000.00) (525,000.00) (700,000.00) (875,000.00)

Total Fixed Assets 3,460,000.00 2,335,000.00 2,010,000.00 1,685,000.00

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Other Assets:

Other Assets - - - -

Total Other Assets - - - -

TOTAL ASSETS 3,493,600.00 2,379,000.00 2,054,000.00 1,729,000.00

LIABILITIES
Current Liabilities:

Accounts Payable 170,000.00 140,693.53 140,693.53 140,693.53

Sales Tax Payable 31,000.00 40,557.26 70,447.26 67,995.51

Payroll Liabilities - - - -

Other Liabilities 55,000.00 85,000.00 85,000.00 85,000.00

Total Current Liabilities 256,000.00 266,250.80 296,140.80 293,689.05

Long-Term Liabilities:

Long term debt 600,000.00 933,333.33 466,666.66 -

Total Long-Term Liabilities 600,000.00 933,333.33 466,666.66 -

EQUITY

Capital Stock/Partner's Equity - - - -

Opening Retained Earnings 67,000.00 126,749.20 182,259.20 177,705.95

Investment Capital 2,550,600.00 1,010,666.67 1,066,933.34 1,215,605.00

Owner's Draw 20,000.00 42,000.00 42,000.00 42,000.00

Total Equity 2,637,600.00 1,179,415.87 1,291,192.54 1,435,310.95

TOTAL LIABILITIES &

EQUITY 3,493,600.00 2,379,000.00 2,054,000.00 1,729,000.00

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Long term credit reimbursement schedule

16. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and
competence of the employees, their investment strategy and the business structure. If all of these
factors are missing from a business (company), then it won’t be too long before the business
close shop.

One of our major goals of starting Tigist Aschalew Supermarket is to build a business that will
survive off its own cash flow without the need for injecting finance from external sources once
the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our
wide range of goods from different brands a little bit cheaper than what is obtainable in the
market and also to ensures that our finished diamond can favorably compete with finished
diamonds from any part of the world and we are well prepared to survive on lower profit margin
for a while.

Tigist Aschalew Supermarket will make sure that the right foundation, structures and processes
are put in place to ensure that our staff welfare is well taken of. Our company’s culture is

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designed to drive our business to greater heights and training and retraining of our workforce is
at the top burner.

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